Wheelocity, an early-stage supply chain startup that supplies fresh food to fast-travel platforms in India, has raised $12 million in a new funding round as it prepares to expand its product range and expand its workforce.
According to the startup, Lightspeed India Partners led the Series A funding, which is a combination of 80% equity and 20% venture debt. Anicut Capital and several other investors also took part in the round.
Founded in September 2021, Velocity provides fast-paced firms with a fresh produce supply chain. The startup says its supply chain network integrates collection centers, fulfillment and distribution centers, last mile centers, dark stores and logistics.
Wheelocity’s clients include Swiggy’s Instamart, Flipkart’s Ninjacart, Google’s Dunzo, and Zomato’s Blinkit.
“Fresh commerce as a category has worked in a very traditional way for the last 2,000 years, so to speak,” Selvam Navy, founder and CEO of Wheelocity, said in a phone interview. “So we’re doing this with the support of technology and bringing more transparency to inventory management.”
The Chennai-based startup claims that by leveraging its supply chain technology network, customers can start operations in new cities in less than seven days.
Currently, Wheelocity operates in more than 12 cities, including the seven largest cities, and processes about 700 tons of fruits and vegetables daily. It has over 350 people on its team with plans to expand, including across products, technologies and operations, over the next six months.
Although Wheelocity started its business with fruits and vegetables, it has since expanded into areas such as dairy, seafood, meat and poultry.
Over the next 12 months, the startup plans to cover more than 30 cities in India.
Before the funding round, Wheelocity was launched. The founding team, which includes co-founders Amresh Singh and Senthil Kumar along with VMS, invested between $6,30,000 and $7,50,000 in the business, VMS told TechCrunch.
“Resolving the fresh produce supply chain in India is a very big challenge and at Wheelocity we have seen a dedicated team committed to creating a meaningful difference for their customers by creating a railroad for the fresh food trade in the country,” said Rahul Taneja, Lightspeed Partner, in a statement.
Wheelocity plans to use the fundraiser to create new farm product offerings and build tech supply chains to reduce and eliminate food waste, the release said. The company is also building Internet of Things (IoT) packaging units, AI-based work solutions, and warehouse and logistics automation.
Instant commerce is rapidly making its way into India. Instamart by Swiggy and Zepto backed by Y Combinator are some of the leaders in the field that have taken off during the pandemic.
Credit: techcrunch.com /